PMEGP Loan:
Your Gateway to Self-Employment
Prime Minister's Employment Generation Programme — Get up to ₹50 Lakhs for Manufacturing & ₹20 Lakhs for Service sectors with government subsidy up to 35%.
Apply on KVIC Portal Now ↗Official application via kviconline.gov.in | Free of cost
The Prime Minister's Employment Generation Programme (PMEGP) is a central sector credit-linked subsidy scheme administered by the Ministry of Micro, Small & Medium Enterprises (MoMSME), Government of India. Launched in 2008 by merging the Prime Minister's Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP), PMEGP helps educated unemployed youth and traditional artisans set up micro-enterprises in the non-farm sector.
Key Features of PMEGP
What is PMEGP Loan?
PMEGP is a credit-linked subsidy scheme that enables individuals and groups to establish new micro-enterprises. The government provides a Margin Money (subsidy) — a one-time capital subsidy that reduces the effective loan burden on the entrepreneur. The balance project cost is funded by a bank loan, which the beneficiary repays over time.
The scheme is implemented by Khadi and Village Industries Commission (KVIC) at the national level, and at the state level by State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), and District Industries Centres (DICs). Banks provide the actual credit.
💡 Did You Know? PMEGP has generated over 8 crore person-days of employment since its launch and has assisted lakhs of entrepreneurs across India set up their own businesses with government financial support.
Subsidy & Loan Structure
The Margin Money (Government Subsidy) under PMEGP varies based on location and category of the applicant:
| Beneficiary Category | Area: Urban | Area: Rural |
|---|---|---|
| General Category | 15% Subsidy | 25% Subsidy |
| SC / ST / OBC / Women / PH / Ex-Servicemen / NER / Hill & Border Areas | 25% Subsidy | 35% Subsidy |
| Beneficiary own contribution (General) | 10% of Project Cost | |
| Beneficiary own contribution (Special Category) | 5% of Project Cost | |
| Balance (Bank Loan) | Remaining % of Project Cost — financed by Bank | |
Eligibility Criteria
✅ Who is Eligible
- ✔ Any individual above 18 years of age
- ✔ Self Help Groups (SHGs)
- ✔ Institutions registered under Societies Registration Act
- ✔ Production Co-operative Societies
- ✔ Charitable Trusts
- ✔ 8th Pass for Manufacturing sector projects above ₹10 lakh
- ✔ 8th Pass for Service sector above ₹5 lakh
❌ Who is NOT Eligible
- ✘ Existing units or units already availing PMRY/REGP/PMEGP benefits
- ✘ Persons below 18 years of age
- ✘ Persons who have already availed PMEGP subsidy
- ✘ Defaulters of any bank / financial institution
- ✘ Existing proprietorship / partnership firms upgrading existing units
⚠️ Important: For projects above ₹10 Lakh in manufacturing and above ₹5 Lakh in service sectors, at least 8th Standard Pass education qualification is mandatory. There is no income ceiling for the applicant.
Sectors & Industries Covered
PMEGP covers a wide range of sectors. Agriculture and allied activities (except crop production), and most micro-manufacturing and service-sector activities are eligible. Some examples:
Note: Certain activities are excluded from PMEGP such as crop production, meat slaughtering, tobacco-related businesses, intoxicant manufacturing, sericulture (primary), and horticulture. Always check the KVIC Negative List before applying.
Documents Required for PMEGP Loan
Keep these documents ready before starting your online application on the KVIC portal:
How to Apply for PMEGP Loan Online
The entire application process is online through the KVIC e-portal. Follow these steps:
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Visit the Official KVIC PMEGP Portal
Go to kviconline.gov.in/pmegpeportal — the official and only government portal for PMEGP applications. Beware of fake websites.
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Register as Individual / Non-Individual
Click on "Online Application" → Select whether you are applying as an Individual or as an Institution (SHG, Trust, Co-operative, etc.) and fill in basic details.
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Fill the Application Form
Provide personal details, business type, project location (urban/rural), project cost, sector, and upload all required documents including Aadhaar, PAN, project report and caste certificate (if applicable).
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Submit & Note Application ID
Submit the application and note your Application ID / Reference Number. You will receive a confirmation via SMS/email. Use this ID to track your application status online.
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Verification by Implementing Agency (KVIC/KVIB/DIC)
Your application will be forwarded to the nearest implementing agency — KVIC, State KVIB, or District Industries Centre. An officer may visit your proposed project site for verification.
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Interview & Task Force Committee Approval
You will be called for an interview by the Task Force Committee (TFC). The committee includes representatives from the implementing agency, NABARD, and lead bank. Approval depends on the viability of your project.
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Bank Loan Sanction
Post TFC approval, the application is forwarded to the bank. The bank appraises your project, sanctions the loan, and the government subsidy (Margin Money) is kept in a fixed deposit for 3 years under your name.
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EDP Training & Disbursement
You must complete a mandatory Entrepreneurship Development Programme (EDP) Training before loan disbursement. After training completion, the first tranche of the loan is released to start your enterprise.
Important Links & Contacts
Frequently Asked Questions
Tips to Increase Approval Chances
- ✔ Prepare a detailed Project Report (DPR) — include market analysis, raw material sources, machinery details, and realistic financial projections.
- ✔ Choose a viable, demand-driven business — TFC committees favour projects with clear market demand and sustainability.
- ✔ Ensure a clean CIBIL score — avoid defaults on existing loans before applying.
- ✔ Apply through the correct implementing agency — rural areas: KVIC/KVIB; urban areas: DIC.
- ✔ Keep all documents ready in scanned form (PDF/JPG) before starting the online application to avoid session timeouts.
- ✔ Apply early in the financial year — funds are allocated annually and may be exhausted by year-end.
- ✔ Do not pay any agent or middleman — PMEGP applications are free of charge on the official portal.
Ready to Start Your Own Business?
Apply for PMEGP Loan today on the official KVIC Government Portal.
Get up to 35% subsidy and start your entrepreneurship journey.